US MSCI Operating Profits Contract For First Time Since 2010

Before the fourth quarter earnings reports started rolling in, Societe General analyst Andrew Lapthorne warned that investors were in for a surprise and that profits growth wasn’t nearly as strong as people were expecting. Now that the results are in, and net income was up 14% for the S&P 500 (INDEXSP:.INX) (12.8% ex-financials), you’d be forgiven for expecting Lapthorne to be eating his words. In fact, he stands by them. 2012 write-downs distort 2013 reporting “We do not like to overly focus on pro-forma earnings beyond using them as an indicator of earnings momentum,” writes Lapthorne. “However ultimately it is growth…